Research Summary
The research report discusses the upcoming launch of dYdX V4, an application-specific blockchain, expected to significantly impact the perpetual contracts landscape. The transition from Ethereum to Cosmos has raised concerns about user retention, but the dYdX team is addressing these issues. Innovations with the dYdX chain include an on-chain and off-chain data aggregator, open-source frontends, and a built-in oracle system. However, the issue of Miner Extractable Value (MEV) needs to be sufficiently addressed. The report also mentions that the dYdX token will see new mechanics, with token holders receiving trading fees.
Actionable Insights
- Monitor the launch of dYdX V4: The new version is expected to significantly impact the perpetual contracts landscape. It’s important to keep an eye on its launch and subsequent performance.
- Understand the transition to Cosmos: The move from Ethereum to Cosmos has raised concerns about user retention. However, the dYdX team is addressing these issues, making it crucial to understand this transition and its implications.
- Consider the implications of new dYdX token mechanics: With the new mechanics, dYdX token holders will receive trading fees. This could potentially influence investment decisions.
- Address the issue of MEV: The issue of Miner Extractable Value (MEV) needs to be sufficiently addressed as it could negatively impact trader pricing and threaten dYdX’s dominance.
